Target Corp. is considering a return to Canada, people familiar with the matter said, more than three years after the U.S. retail giant pulled out of the country following a disastrous expansion.
Target has been in talks with potential partners about a possible return and is expected to make a decision by the end of the year, the people said. It isn’t clear what form a new Target Canada would take, but the company is unlikely to try to replicate its failed foray into the country, they said.
Target’s original entry into Canada was hampered by logistical problems, including a shortage of staff and products on store shelves. The company was also slow to adapt to local preferences. It eventually wrote down more than $5 billion in losses and pulled out in 2015, less than two years after opening its first store in Canada.
A return would be a bet that Target can do better the second time around. The company has gained experience operating in other countries, including China and India, since it left Canada. And the Canadian retail landscape has changed in Target’s absence, with rivals such as Amazon.com Inc. and Walmart Inc. expanding their presence.
Is Target returning to Canada in 2021?
It is still too early to say for certain whether or not Target will return to Canada in 2021. However, the company is reportedly considering it and is expected to make a decision by the end of the year.
If Target does decide to return, it is unlikely to try to replicate its failed foray into the country from last time. Rather, the company has gained experience operating in other countries since then and may have more success following a different strategy this time around.
